Dodoma. Tanzania has unveiled a new three-year Medium-Term Revenue Collection Strategy (2025/2026–2027/2028), aimed at strengthening the foundations of domestic revenue collection, enhancing predictability in revenue policies, and increasing government revenue.
The strategy outlines reforms in three key areas: policy improvements, enhanced revenue administration, and legal reforms. It builds on ongoing government initiatives to broaden the tax base and increase revenue from domestic sources.
Speaking during the launch at the Ministry of Finance headquarters in Dodoma on Thursday, the Permanent Secretary of the Ministry of Finance, Dr. Natu El-maamry Mwamba, said the strategy will encourage voluntary tax compliance, close loopholes for tax evasion, reduce budget deficits, and strengthen public trust and investment in the revenue system.
“The implementation of this strategy will improve government revenue management and ensure a sustainable budget that allows us to accelerate the delivery of essential services to citizens through domestic resources,” said Dr. Mwamba.
Developed by the Ministry of Finance in collaboration with development partners, government institutions, and private sector stakeholders, the strategy also proposes the formulation of a national tax policy to guide the preparation and review of tax policies, as well as the modernization of electronic systems used in revenue collection.
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Dr. Jonson Nyella, Commissioner for Policy Management at the Ministry of Finance, noted that the strategy was prepared through consultations led by local experts, with technical support from the International Monetary Fund (IMF).
He emphasized that the strategy is crucial for reducing the budget deficit and enabling the country to finance development projects using domestic funds, especially as Tanzania transitions from a low-income to a middle-income economy that requires greater self-reliance.
Tanzania’s tax-to-GDP ratio has reached 13.1 percent by 2024/25 fiscal year, up from 11.5 percent in 2020/21. With the rising trend in the tax-to-GDP ratio, Tanzania is quite near to the 15 percent threshold that is generally recommended for developing countries — a tipping point that can support sustained economic growth and development.
To ensure effective implementation of the new strategy, an Oversight Committee has been formed. It will be chaired by the Permanent Secretary of the Ministry of Finance, with the Deputy Permanent Secretary for Economic Affairs serving as secretary.
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Members include permanent secretaries from the Ministry of Planning and Investment, the President’s Office – Finance and Planning (Zanzibar), Regional Administration and Local Government (PO-RALG), the Ministries of Minerals, Lands, Natural Resources and Tourism, and Information, Communication and Technology.
Other members are the Governor of the Bank of Tanzania, the Commissioner General of the Tanzania Revenue Authority (TRA), the Treasury Registrar, the Executive Secretary of the Planning Commission, the President of the Tanzania Chamber of Commerce, Industry and Agriculture (TCCIA), and the Chairperson of the Tanzania Private Sector Foundation (TPSF).
